Labor productivity rises when
A) average worker output falls.
B) business investment falls.
C) average worker output rises.
D) nominal wages fall.

Question

Quizplus · Accepted Answer

Labor productivity is a measure of the amount of goods and services produced by a worker in a given period of time. When the average worker output rises, it means that each worker is producing more goods and services, leading to a higher overall labor productivity. Conversely, if average worker output falls, labor productivity would decrease. Business investment and nominal wages are not directly related to labor productivity.

Labor Productivity Rises When